Using Enterprise Structures Configurator to automatically create Business Unit in Oracle HCM Cloud

In this post, we will talk about how ESC can be used to generate business unit automatically based on Organization structure.

The pre-requisite before we start to create business unit is to set the Country, Legal Entity, and/or division.

Business Unit should be defined at either the Function level like Sales, Marketing, Finance etc. or either at a more detailed level like Country and Legal Entity.

Let’s discuss the following use case:

Consider a company A has two divisions –

Consultancy Division

Product Development Division.

The company has operations in three countries

US

UK

Canada

Product development division is only active in US and Consultancy Division is active in all the three countries.

Only one Legal entity exists each for UK and Canada and two for US.

Additionally, all the three countries have the Sales Function and Finance function, and Canada has Marketing function also.

When selecting “Automatically Generate” Business Unit, following options are available, and the corresponding business units suggestions:

Navigate to Setup and Maintenance -> Establish Enterprise Structure. The first two train stops provide the ability to input Division and Legal Entity definitions. Use the Train stop to navigate to “Create Business Unit” and select the option “Automatically generate business Units” and define the level.

At this stage, the combination for business unit suggested by the system could be accepted either partially or in total.

In the next post in this series, we will discuss how Business Unit and Reference Sets are related and how we can use ESC to create reference sets and associate them with Business Unit.